BACKGROUND / The perfume market is turning upside down: Douglas is becoming more and more competitive

BERLIN (dpa-AFX) – The German perfume market is in transition. For a long time, he was virtually unchallenged dominated by Douglas. But now powerful new competitors are challenging the market leader for customers. Competition in the $ 1 billion market for perfumes and cosmetics will be reinvigorated. According to trade specialists, this is good news for consumers.

Zalando's example: until a few months ago, Germany's largest online fashion house was limited to selling shoes and clothes. But since the spring, the Internet giant also offers perfumes and cosmetics. He now has nearly 5,000 articles from more than 150 brands on the website.

But this is not enough. On Saturday, Zalando will open its first cosmetics store near the Hackescher Markt in Berlin, the Zalando Beauty Station – where brands such as Estée Lauder, M.A.C or Clinique are presented in a sophisticated atmosphere. Cosmetics and perfumes are an ideal complement to the fashion offering, says Rubin Ritter, co-CEO of Zalando. Here, there is "a lot of potential for development".

But Zalando is not the only company that seeks to establish itself in the German perfume market. The Sephora perfume chain, belonging to the French luxury group LVMH (Dior, Louis Vuitton, Moet & Chandon), is gradually expanding its presence in Germany

A year ago, the chain opened its first German store at the Kaufhof store in Munich. Marienplatz. Meanwhile, Sephora is present in 13 branches of the chain of department stores. And according to the information of the industry magazine "Textile Industry" will soon follow the first independent stores in major German cities. In addition, online perfumeries such as Flaconi or Notino are troubling the market leader

. The attacks of the competition hit Douglas in a weak phase. The market leader has recently beaten the German market with sales declines. Douglas's new boss, Tina Müller, has therefore prescribed the company in the last few months a beauty treatment. Branch design will be revised. Stores need to be repositioned better.

Also in the online trade, it gives gas – and, if necessary, reaches as deep into the bag. It is only this week that Douglas received the green light from the Bundeskartellamt to take control of his rival Akzente. Important for Douglas are the purchase of less than 27 accent perfumeries that the company 's own online store Perfume Dreams. "The acquisition of Parfumdreams will strengthen our e-commerce business in the long run," says Müller

Müller wants to pursue a two-brand strategy on the Internet in the future. While Douglas is putting more on expensive goods, Parfumdreams should complete the offer.

Müller's move is gaining weight. "By acquiring the fragrance, Akzente Douglas' market share in the online sector is increasing dramatically," even admits Bundeskartellamt President Andreas Mundt. However, this does not worry the competitive goalkeeper. Faced with fierce competition, he is convinced that there is no significant obstacle to competition.

There is a simple reason why the market is so competitive. According to a forecast from the management consulting firm AT Kearney's online beauty and personal care products in Europe will grow by more than 8% a year by 2019, due to the preferences of the younger generation, the so-called Millennials. "Generation Y has a lot more makeup than the generation of moms." This generation has a great affinity for cosmetics, says Müller / Rea / DP / fba